Lucknow Wealth Management：Gold price rises today as global stocks fall. Good time to invest？

Gold prices witnessed a rise on Friday amid weakness in global equity markets, but experts indicate that the yellow metal is also likely to remain under pressure.

Around 1:34 pm, gold future prices on the MCX were up nearly 1% at Rs 70,594, compared to its previous close of Rs 69,954.

While gold prices have gained in the wake of weak global equity markets, experts are not entirely convinced that the upward rally will continue.

Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd, noted that gold prices are likely to remain under pressure as traders await US non-farm payrolls data for insights on the Federal Reserve's policy direction.

If the data shows weakness, it could lead to an increase in gold prices. However, strong data could lead to investors focusing on riskier assets such as equities.Lucknow Wealth Management

Rahul Kalantri, VP of Commodities, Mehta Equities Ltd, said, “Gold and silver showed significant price volatility, gaining in the early trading session but unable to sustain higher levels.”

Kalantri also noted that heightened tensions in the Middle East, following an air strike in Iran and Lebanon that killed top Hamas and Hezbollah officials, “bolstered the safe-haven demand for gold.”

“US economic data released on Thursday was mixed; jobless claims surged to 2,49,000 from the previous 2,35,000, marking the highest level since August 2023 The U.S. flash manufacturing PMI data was disappointing, reflecting the lowest reading since November 2023, which pressured silver prices lower,” he noted.

“We expect gold and silver prices to remain volatile in today’s session ahead of the US job data release. Gold has support at $2422-2405 and resistance at $2458-2474. Silver has support at $28.10-27.90 and resistance at $28.64-28.80,” Kalantri said.

“In INR, gold has support at Rs 69,650-69,410 and resistance at Rs 70,290-70,550. Silver has support at Rs 82,020-81,450 and resistance at Rs 83,090-83,640,” he added.Chennai Investment

Dr. Renisha Chainani, Head Research - Augmont - Gold For All, said, "Gold prices continue to scale higher and higher above $2500 on fresh hints of a September rate cut, with significant geopolitical factors supporting safe-haven bullion, including wider political uncertainty and increased concerns of an escalation in the Middle East conflict."

"Furthermore, strong fundamentals and technical support the prices in the medium term. The first determinant has been the extremely strong central bank buying by emerging market central banks of Asia. The second determinant has been the rising interest in gold through ETFs, the physical market, or even the future COMEX, which has seen a rise in those positions supporting gold prices. The third determinant has been rising tensions in the Middle East, Russia, and Ukraine, which have also supported gold prices," she added.

"As gold has crossed all resistance trading above $2500, the sky is the limit. The next resistance could be psychological levels of $2525 (~ Rs 71000) and $2550 (~Rs 71700)."

Jaipur Wealth Management